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Foreigners Break New Record by Purchasing 15% of Homes Sold in 2023

Byeditor

Apr 3, 2024

Last year, a total of 583,000 transactions were recorded in the Spanish real estate market, with more than 87,000 houses being purchased by foreigners. This represents almost 15% of the homes sold and sets a record in historical data. Despite the three most common nationalities – British, German, and French – decreasing in market share, foreigners have never owned such a significant portion of the real estate market in Spain.

The growth in foreign home purchases was led by three communities in the Mediterranean area – Murcia, the Valencian Community, and Catalonia. The latest edition of the Real Estate Registry Yearbook revealed that the Balearic Islands continued to be the most popular destination for foreign buyers, with over 31.5% of homes sold going to non-Spanish nationals.

Overall, Spain has seen two years of strong growth in real estate transactions after a period of decline. This has been attributed to factors such as increased tourism-related purchases, retirees relocating to Spain, and a growing labor market attracting migrants. Provinces like Alicante, Santa Cruz de Tenerife, and Malaga saw the highest percentages of foreign home purchases, while some provinces had lower levels of foreign buyer activity.

In terms of nationality, British buyers remained the largest group of foreign purchasers, followed by Germans and French buyers. However, other nationalities like Moroccans, Belgians, and Italians saw an increase in their real estate acquisitions in Spain. The distribution of purchases by nationality varied across different regions, with Germans dominating the Balearic Islands market and the British being the most common buyers along the Mediterranean coast.

While the real estate market in Spain continued to see price growth, there was a slight decrease in the number of homes sold for amounts exceeding half a million euros. Despite this, the overall trend of foreign buyers in the Spanish real estate market remains strong, with varied nationalities contributing to the diversity of purchasers across different regions.

By editor

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